Utilities Aren't Seeking To Recover From Retail Suppliers Costs Of Billing System Changes Needed To Implement Supplier-Provided Refunds Under Amnesty Program

October 16, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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In addressing how to implement a proposed Connecticut PURA order which would provide that refunds due to customers under amnesty programs filed by retail electric suppliers should be effectuated through utility bills and not mailed checks, both Connecticut Light & Power and United Illuminating proposed to recover any costs of needed billing system changes through a nonbypassable customer charger, rather than assigning the cost to retail suppliers

As exclusively first reported by EnergyChoiceMatters.com, the Connecticut PURA recently issued a draft order to modify how retail electric suppliers are to refund customers amounts which were overbilled as the result of not providing customers with timely Next Cycle Rate information, under amnesty plans filed by various suppliers. See background on the amnesty plans and refunds here

Under the draft, suppliers will not provide refunds directly to residential customers. Instead, upon approval of an amnesty plan, the supplier will direct all refund monies to the electric distribution companies (EDC), who will apply individual refunds as a bill credit to the affected customer’s EDC account

While the EDCs expressed various concerns regarding implementation and timing of such refunds, both EDCs said, in separately filed comments, that cost recovery should be done via a nonbypassable charge.

CL&P said, "the Company will incur incremental costs associated with complying with the orders in the Draft Interim Decision and requests that the Final Decision include language which confirms that any incremental out-of-pocket costs incurred by Eversource to implement the orders in the final decision can be recovered from all ratepayers through the Non-Bypassable Federally Mandated Congestion Charges ('NBFMCC') or other non-bypassable rate component, authorized by the Authority."

UI requested that PURA authorize that, "The Company can recover all costs incurred to implement the Authority’s directives through the NBFMCC [Non-bypassable Federally Mandated Congestion Charge] charge on customers’ bills."

"The NBFMCC mechanism is the most administratively efficient manner in which to ensure the timely recovery of the Company’s costs. The Company is not requesting for a modification to the NBFMCC rates at this time, but envisions that the actual calculation of costs will be provided during the semiannual NBFMCC reconciliation docket. Based on the foregoing, UI respectfully requests that the Authority issue an order in this proceeding that the Company may recover costs associated with the implementation of any changes to its billing system to accommodate modifications required by Order Nos. 4 and 6, or any other process changes to comply with the Decision issued in this docket, through the NBFMCC," UI said

Docket 18-12-22

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